insuranceWill hackers really avoid law firms to stay out of trouble?
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cyber insurance

Hacker will avoid law firm to stay out of trouble

Think again. The statistic we have says otherwise. 20% of most cyber claims resulting from social engineering and fraudulent funds transfer attacks directed at law firms.

Law firms are one fund's transfer fraud, ransomware, or email compromise away from exposure.

Fraudulent funds transfers are one of the most common claims we see amongst Coalition policyholders. Malicious actors can access a company's corporate email systems through phishing attacks and spoofed emails, among other methods, and impersonate executives with a fraudulent request. Thankfully, Coalition is often able to help recover the funds — even after they're out the door.

A case study of Law Firm cyber insurance case
Our partner vendor received a call that a client had lost $200,000 in a social engineering incident. A hacker sent a spoofed email to their controller, impersonating the company's CFO, and the controller wired the funds to the bad actor. The company thought the funds were gone for good, but then they called Coalition. Upon receiving the call, our partner firm immediately began discussions with financial institutions and law enforcement. As a result of these urgency and relationships, $150,000 of the $200,000 was recovered within 24 hours of receiving the call. The money was returned to the client, and they were able to get back to business quickly. Their insurance policy with Coalition covered the remainder of the lost funds. Our vendor's Security team also helped the company put two-factor authentication practices in place to ensure a second person signed off on all significant wire transfers. Unlike traditional insurance companies, our partner has the relationships and know-how to recover funds even after they're out the door. For many policyholders, we're able to recover all of the funds lost — helping our client avoid a claim entirely.

In today's world, a law firm needs the most comprehensive protection.

Funds transfer fraud losses arising from a security failure or social engineering.
Restoration of digital assets, including sensitive client information
Costs to respond to a ransomware (extortion) incident

Fraudulent charges when a criminal actor exploits a cloud or telephony provider

Costs to replace computer systems and other technology damaged in a cyber attack

Property damage and bodily harm coverage for IoT failures

Always Review Your Insurance Coverage

Over time, businesses may have an increasing need for insurance coverage as their business grows. Always take time to review your insurance and fill in gaps as the situation changes. 

As an insurance broker, we'll help small business owners to decide what is needed and the best fit for their insurance.

Cyber risk coverage

If you take online orders, store sensitive information on the computer, you need proper cybercrime protection. See this section about cyber insurance

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